| |  | Hilton Head Island Real Estate Specialist
Save money and time on Vacation homes and villas, retirement homes, new developments, homesites? Your search stops here!
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Nanci Buczynski
Phone: (843) 298-1469
Fax: (843) 689-5742
E-mail: MizNanci@MizNanci.com
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| Second homes can make beautiful rentals
By SUSAN STELLIN
New York Times News Service
Published Monday, March 30, 2009
People who buy second homes often have the same fallback plan in case their purchase proves to be too much of a stretch-- "Well, we can always rent it out if we need to."
So with belts tightening and the real estate market in turmoil, how is the vacation-rental business holding up?
Although there are few statistics on the national vacation-home rental market, property managers on Hilton Head Island and in other locations say more second-home owners are trying to rent out their properties at least part-time. Previously, these properties only were used by the owner's family and friends as a vacation home.
While bookings for this summer are down slightly over last year, business is better than many vacation rental companies on Hilton Head expected for this year, according to several industry leaders. Jason Presley, owner of Hilton Head vacation rental company Destination Vacation, said visitors are waiting longer to book beach houses and villas.
"They are uncertain about their own jobs or the general economy, so they're waiting a bit longer to make sure they can afford to take the vacation," he said.
Destination Vacation markets and manages 130 individually owned, upscale oceanfront and ocean oriented properties in Sea Pines, Palmetto Dunes and the Forest beach areas. The short term rental company charges owners a percentage of home's rental rate, receiving payment only when the property is rented.
Presley and other members of the vacation rental industry say that business is off for older properties and those that aren't close to the beach.
"Renters are obviously trying to get the best deal they can, and they're more discriminating," said Todd Brooks, owner of Island Getaway Rentals on Hilton Head. In business since 1989, the company manages 500 vacation homes and villas.
Feeling the financial pinch, prospective renters in many areas are more likely to book shorter stays (often at the last minute) and opt for destinations within driving distance.
On Hilton Head, vacation rental industry leaders said they've seen renters request shorter stays this spring, but summer remains a "Saturday to Saturday" market.
Renters are also asking for -- and often receiving -- reduced rates. They're emboldened to haggle probably because they're seeing deep discounts on other goods and services they're buying at department stores, big box retailers and other businesses. The average rental rate for a five-bedroom, five-bathroom home managed by Destination Vacation is about $6,000 per week in peak season. Three bedroom villas rent for an average of about $3,000 per week.
And with more properties to choose from, renters can afford to be picky about amenities and discounts. These days, a pool and wireless Internet access -- as well as an updated, remodeled interior -- are standard client expectations, Brooks said.
That is translating into more pressure on homeowners to spruce up and market their properties.
"If I want to be fully booked, I have to offer more features that renters can't find elsewhere," said Victor Nawrocki, who owns a home near Orlando, Fla. that he furnished with Tempur-Pedic mattresses and Disney decor.
That includes a "101 Dalmatians"-themed room decked out with black-and-white spotted wallpaper and bedding, and two enormous plush dogs lounging on the twin beds. Other draws include a heated pool and hot tub (protected by an alarm if a wandering child opens the gate) and a game room with a pool table, foosball and air hockey.
"I've been really proactive and it's paid off," Nawrocki said, pointing out that the four-bedroom house has been booked 85 percent of the time since he started renting it last July.
"I need this house to do well now -- that's why I've been working so hard at promoting it," he said. He said he was sympathetic when renters try to negotiate, and would trim a bit off his usual rate if the dates filled a hole in his calendar. Most owners of vacation rental properties understand that in time like these, they need to have some flexibility with their rates, Presley said.
Also, many homes that are part of rental pools are for sale. Some Realtors, working with the rental companies, offer financial incentives to guests if they allow a showing and the prospective buyers end up purchasing the home.
Patricia Berryman, who lives in Golden, Colo., rents out a two-bedroom condominium in Vail, Colorado herself through an Internet site. Like many
homeowners who advertise their properties online, Berryman checks her competitors' prices and rental calendars (which show how many days are booked), and has justified buying a BlackBerry so she can respond to inquiries promptly.
"It's a matter of getting back to people right away," she said, "because they move down the list -- even in four hours."
Brooks said that while some Hilton Head vacationers rent directly from absentee owners, his clients value having his staff here on the island to call if they have any problems.
Island Packet real estate editor
I can provide you with current market information and statistics about rentals.
If you want to have daily or weekly updates, send me an e-mail with your area of interest and we will begin your e-mail market search.
Nanci Buczynski, South Carolina RealtorŪ
nanci@miznanci.com
843-298-1469, www.MizNanci.com
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